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Serga [27]
4 years ago
8

After deciding to buy a new car, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs

$43,000. The dealer has a special leasing arrangement where you pay $4,300 today and $505 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6 percent. You believe you will be able to sell the car for $28,000 in three years. a. What is the present value of leasing the car

Business
1 answer:
ipn [44]4 years ago
3 0

Answer:

The correct answer is $20,899.86.

Explanation:

According to the scenario, computation of the given data are as follows:

Rate  = 6%

Rate monthly = 6%/12

Cost = $43,000

Down payment = $4,300

Payment Per month (pmt) = $505

Time period = 36 months

So, we can calculate the present value of leasing by using financial calculator:

The attachment is attached below:

Present value = PV + Down payment

So, Present value of leasing = $16,599.86 + $4,300

= $20,899.86

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scoray [572]

Answer:

Organizations are always looking for new strategies to leverage their profits and market positioning. Corroboration arises then as a strategy in which two or more companies unite temporarily or not, through strategic alliance, licensing, joint venture, outsourcing, etc., with the common objective of expanding their market share and profits.

The way to corroborate influences the success of a collaboration because the chosen strategy is aligned with the organizational values ​​and objectives. When two companies join a strategic alliance, for example, they share their resources, knowledge, technologies, market value and others, to achieve different joint benefits, such as competitive advantage, consumer attraction, greater positioning, increased market share, etc.

5 0
3 years ago
The futures price of gold is $1,000. Futures contracts are for 100 ounces of gold, and the margin requirement is $3,000 a contra
Dmitry [639]

Answer:

a. The initial remittance is the same as the initial margin requirement of $3,000.

b. The profit is;

= 100 ounces * ( 1,005 - 1,000)

= $500

Return is;

= Profit/ Margin

= 500/3,000

= 16.67%

c. The loss is;

= 100 * ( 1,000 - 998)

= -$200

d. If the futures price declines to $984, what must the speculator do?

Depends on if the maintenance requirement is still below the balance.

= 3,000 - 100 * (1,000 - 984)

= $1,400

This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.

= 3,000 - 1,400

= $1,600

Speculator should deposit $1,600.

e. = 3,000 - 100 (1,000 - 982)

= $1,200

8 0
3 years ago
Richard created an advertisement that included a scientific explanation of how clothes are cleaned beside the image of washing m
olga2289 [7]

Answer:

Richard should have use <u>b</u><u>r</u><u>e</u><u>v</u><u>i</u><u>t</u><u>y</u> and <u>p</u><u>e</u><u>r</u><u>c</u><u>i</u><u>s</u><u>i</u><u>o</u><u>n</u><u> </u>in his ad to make it better.

Explanation:

Brevity is similar to shortness and percision is the most suitable answer because fluidity means changable and the comparability mean it can be similar and comparable

4 0
3 years ago
you buy a 8%. 10 year maturity bond for 980. a year later, the bond price is 1200. assume annual coupon payments. what is the ne
DedPeter [7]

Answer:

5.16%

Explanation:

Missing word <em>"(Assume a face value of $1,000 and annual coupon payments."</em>

Current price of the bond = $980

FV = $1000

Coupon rate = 8%

Term = 10 maturity

After 1 year bond price = $1,200

Remaining life = 9 years (10-1)

New yield rate = [Coupon rate+(Maturity value-Current price) / Useful life] / [0.6*Current price + 0.4*Maturity value]

New yield rate = [1,000*8% + (1,000-1,200) / 9] / [0.6*1,200 + 0.4*1,000]

New yield rate = $57.78 / $1,120

New yield rate = 0.0515893

New yield rate = 5.16%

4 0
3 years ago
Environment-related opportunities for service include:
andreyandreev [35.5K]

Answer:

1) Reduce the use of water

2) Reusing plastic items

3) Recycle

4) Reduce the use of electricity

5) Planting/gardening

6) voluntarily doing 1 - 5

3 0
3 years ago
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